RCS - Loop Industries - Loop Industries and SK Geo Centric Sign Joint

Loop IndustriesAnnouncement

02/05/2023 14:45

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230502:nRSB1318Ya&default-theme=true

RNS Number : 1318Y  Loop Industries  02 May 2023

Loop Industries and SK Geo Centric Sign Joint Venture Agreement To
Commercialize Loop's Technology in the Asian Market

MONTREAL, QC / ACCESSWIRE / May 2, 2023 / Loop Industries, Inc. (NASDAQ:LOOP)
("Loop"), a clean technology company whose mission is to accelerate a circular
plastics economy by manufacturing 100% recycled polyethylene terephthalate
("PET") plastic and polyester fiber, and SK Geo Centric Co. Ltd. ("SKGC"), a
subsidiary of the South Korean SK Group, today announced they have signed a
definitive Joint Venture Agreement ("JVA") to deploy Loop's technology in the
Asian market through multiple commercial manufacturing facilities. SKGC will
own 51% of the venture, which will be headquartered in Singapore, and Loop
will have the remaining 49% ownership. Under the JVA, the venture will have
exclusive rights to commercialize Loop's technology in the Asian market for a
prescribed period and Loop will license its technology for an annual royalty
for each of the commercial plants.

The first planned commercial manufacturing facility with Infinite Loop™
technology, located in Ulsan, South Korea, will have an annual capacity to
supply 70,000 metric tons per year of Loop™ PET resin for packaging and
polyester fiber applications, and is anticipated to break ground in 2023 and
to have construction completed by the end of 2025. In addition to Infinite
Loop™ Ulsan, the two partners have outlined plans which target a minimum of
three additional commercial manufacturing facilities to be constructed
throughout Asia by 2030. Loop and SKGC have partnered with SK ecoengineering,
a subsidiary of the SK Group that brings a wealth of expertise as an EPC
contractor, for the engineering and construction of the commercial
manufacturing facilities.

Asia is the largest global market for PET plastic and polyester fiber and is
at the center of global manufacturing, which is an attractive opportunity for
the venture. Loop's innovative technology can bring true circularity to PET
plastic and polyester fibers, helping to mitigate the global environmental
effects of petrochemical overuse and plastic waste. By converting low value
PET plastic and polyester fiber waste into 100% recycled virgin-quality
Loop™ PET resin, Loop's technology has the potential to transform the Asian
PET plastic and polyester fiber market, helping reduce reliance on finite
resources while also diminishing environmental impacts, such as air and water
pollution. Deploying Loop's technology in the Asian market would bring a much
needed shift to the way PET is managed and manufactured in the region, and
will help meet the growing demand for recycled PET.

The signed JVA marks the next step in both partners' commitment to reduce
plastic waste and to accelerate a true circular plastics economy. This is a
testament to Loop's mission to provide infinitely recyclable virgin-quality
Loop™ PET resin to a global market. For SKGC, this venture ushers in a new
era of sustainable and circular practices into a market that is searching for
environmentally friendly solutions. This JVA represents a major step towards
creating a sustainable future by increasing the availability of recycled PET
throughout the Asian market.

"It is a great pleasure to join into this meaningful partnership to
commercialize Loop's technology in Asia. We will strive for the successful
completion of the advanced recycling complex in Ulsan, which will function as
a significant stepping stone for a future expansion throughout Asia." said
Kyungsoo Na, the CEO of SKGC. "Through this JV agreement, we expect the two
partners to make a great leap towards the realization of a circular plastics
economy and achieve our vision 'Green for Better Life'."

"We are extremely proud to partner with SKGC to create an infinitely
recyclable and globally accessible circular economy for PET plastic and
polyester fiber. Loop and SKGC have worked closely together for several years
and the two companies compliment each other very well by providing different
areas of expertise to achieve our common goal of bringing an end-to-end
solution with a compelling value proposition to our customer base." said Loop
Founder and CEO Daniel Solomita. "By expanding Loop's manufacturing footprint
into Asia, our global CPG brand customers who use polyester fiber for textiles
will have the opportunity to incorporate Loop branded material into their
products and create circularity for their textile waste by recycling it at our
manufacturing facilities."

About SK geo centric

In 1972, SK geo centric laid the foundation for the development of the
petrochemical industry by operating the first naphtha-cracking facility in
Korea. SK geo centric provides various automotive & packaging products and
solutions that customers and markets require. Furthermore, SK geo centric is
growing into a technology-based recycled material company through continuous
R&D efforts and global expansion. SK geo centric will achieve its vision,
'Green for Better Life', by establishing a plastics based circular economy by
collaborating with various partners and stakeholders. SK Geo Centric gathered
the three advanced chemical recycling technologies in one place which called
"Advanced Recycling Cluster (ARC)" through strategic collaboration with global
companies such as Pure Cycle Technologies (US), Loop Industries (Canada), and
Plastic Energy (UK). SK geo centric will expand its portfolio of eco-friendly
products and will continuously recycle beyond the amount of plastics produced
in order to realize and leverage the sustainability efforts that will benefit
our planet.

About Loop Industries

Loop Industries is a technology company whose mission is to accelerate the
world's shift toward sustainable PET plastic and polyester fiber and away from
our dependence on fossil fuels. Loop Industries owns patented and proprietary
technology that depolymerizes no and low-value waste PET plastic and polyester
fiber, including plastic bottles and packaging, carpets and textiles of any
color, transparency or condition and even ocean plastics that have been
degraded by the sun and salt, to its base building blocks (monomers). The
monomers are filtered, purified and polymerized to create virgin-quality
Loop™ branded PET resin suitable for use in food-grade packaging and
polyester fiber, thus enabling our customers to meet their sustainability
objectives. Loop™ PET plastic and polyester fiber can be recycled infinitely
without degradation of quality, successfully closing the plastic loop. Loop
Industries is contributing to the global movement towards a circular economy
by reducing plastic waste and recovering waste plastic for a sustainable
future. Common shares of the Company are listed on the NASDAQ Global Market
under the symbol "LOOP."

For more information, please visit www.loopindustries.com
(https://pr.report/6h7eUxpu) . Follow Loop on Twitter: @loopindustries,
Instagram: loopindustries, Facebook: Loop Industries and LinkedIn: Loop
Industries

Forward-Looking Statements

This news release contains "forward-looking statements" as defined in the U.S.
Private Securities Litigation Reform Act of 1995. Such statements may be
preceded by the words "intends," "may," "will," "plans," "expects,"
"anticipates," "should," "could," "projects," "predicts," "estimates," "aims,"
"believes," "hopes," "potential" or "continue" the negative of such terms or
similar words. These forward-looking statements include, without limitation,
statements about Loop's market opportunity, its strategies, ability to improve
and expand its capabilities, competition, expected activities and expenditures
as Loop pursues its business plan, the adequacy of its available cash
resources, regulatory compliance, plans for future growth and future
operations, the size of Loop's addressable market, market trends, and the
effectiveness of Loop's internal control over financial reporting.
Forward-looking statements are not guarantees of future performance, are based
on certain assumptions and are subject to various known and unknown risks and
uncertainties, many of which are beyond Loop's control, and cannot be
predicted or quantified and consequently, actual results may differ materially
from those expressed or implied by such forward-looking statements. Such risks
and uncertainties include, without limitation, risks and uncertainties
associated with among other things: (i) commercialization of our technology
and products, (ii) our status of relationship with partners, (iii) development
and protection of our intellectual property and products, (iv) industry
competition, (v) our need for and ability to obtain additional funding
relative to our current and future financial commitments, (vi) engineering,
contracting, and building our manufacturing facilities, (vii) our ability to
scale, manufacture, and sell our products in order to generate revenues,
(viii) our proposed business model and our ability to execute thereon, (ix)
adverse effects on the Company's business and operations as a result of
increased regulatory, media, or financial reporting scrutiny, practices,
rumors, or otherwise, (x) disease epidemics and other health-related concerns
and crises, which could result in reduced access to capital markets, supply
chain disruptions and scrutiny, embargoing of goods produced in affected
areas, government-imposed mandatory business closures and any resulting
furloughs of our employees, government employment subsidy programs, travel
restrictions or the like to prevent the spread of disease, or market or other
changes that could result in non-cash impairments of our intangible assets,
and property, plant and equipment, (xi) the effect of the continuing worldwide
macroeconomic uncertainty and its impacts, including inflation, market
volatility and fluctuations in foreign currency exchange and interest rates,
(xii) the outcome of any SEC investigations or class action litigation filed
against us, (xiii) our ability to hire and/or retain qualified employees and
consultants, (xiv) other events or circumstances over which we have little or
no control, and (xv) other factors discussed in Loop's subsequent filings with
the Securities and Exchange Commission ("SEC"). More detailed information
about Loop and the risk factors that may affect the realization of
forward-looking statements is set forth in Loop's filings with the SEC.
Investors and security holders are urged to read these documents free of
charge on the SEC's web site at http://www.sec.gov
(https://pr.report/ipZxoQqf) . Loop assumes no obligation to publicly update
or revise its forward-looking statements as a result of new information,
future events or otherwise.

Loop

Investor Relations:

Kevin C. O'Dowd, Vice-President Communications & Investor Relations

Loop Industries, Inc.

+1 617-755-4602
kodowd@loopindustries.com (mailto:kodowd@loopindustries.com)

Media Inquiries:

Andrea Kostiuk, VP Marketing & Communications

Loop Industries, Inc.

+1 (450) 951-8555
akostiuk@loopindustries.com (mailto:akostiuk@loopindustries.com)

 

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NRAATMBTMTMMBTJ